Showing papers on "Value proposition published in 2015"
TL;DR: In this article, the role of institutions in innovation from a service-ecosystems perspective is explored, which helps to unify diverging views on innovation and extend the research regarding innovation systems.
587 citations
Abstract: The proposed framework sheds light on the fundamental role that value propositions play in service systems Building on service-dominant logic from marketing and structuration theory from sociology
440 citations
TL;DR: In this article, the authors present an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation.
Abstract: This paper presents an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation. The paper suggests that value propositions are configurations of several different practices and resources. The paper finds that ten common practices, organized in three main aggregates, constitute and fulfill value propositions: i.e. provision practices, representational practices, and management and organizational practices. Moreover, the paper suggests that service innovation can be equated with the creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways. It identifies four types of service innovation (adaptation, resource-based innovation, practice-based innovation, and combinative innovation) and three types of service innovation processes (practice-based, resource-based, and combinative). The key managerial insight provided by the paper is that service innovation must be conducted and value propositions must be evaluated from the perspective of the customers’ value creation, the service that the customer experiences. Successful service innovation is not only contingent on having the right resources, established methods and practices for integrating these resources into attractive value propositions are also needed.
375 citations
TL;DR: In this paper, the authors present a managerial framework that supports firms in handling digital innovation, focusing on five key areas: user experience, value proposition, digital evolution scanning, skills, and improvisation.
350 citations
DOI•
19 Mar 2015TL;DR: Osterwalder and Pigneur as discussed by the authors further explored the link between business models and value propositions in the 2014 publication Value Proposition Design (VPD) and published a Book Review on the new publication.
Abstract: Leading on from the bestselling 2010 book Business Model Generation (VPD), Alexander Osterwalder and Yves Pigneur, this time flanked by Greg Bernarda, Alan Smith and Trish Papadakos, set out to further the intricate link between business models and value propositions in the 2014 publication Value Proposition Design (VPD). This is a Book Review on the new publication.
235 citations
TL;DR: In this article, the authors explored the barriers to exercising value-based pricing and suggested ways to overcome those obstacles in putting valuebased pricing into action in B2B sales and provided guidance to business practitioners willing to develop value-aware pricing as part of their business model.
117 citations
TL;DR: In this paper, the authors investigate organizational capabilities that contribute longitudinally and relationally to increased customer-perceived value in sales management practice, and identify the essential capabilities required for value-based selling, illustrates managerial practices to implement those capabilities, and provides guidance on value proposition design, value quantification, and value communication.
116 citations
TL;DR: This research contributes to information systems (IS) theory by introducing a customer value perspective in the social media context and helps service providers by identifying factors predicting satisfaction and continued use that might be employed to improve offerings to keep customers coming back.
Abstract: Social media offers customers a unique service value proposition. Recognizing service value as a pivotal concept, this study develops an aggregate construct of online social value, whereby customer...
100 citations
TL;DR: The aim of this work was to scope the social value arguments that have been advanced relating to the reimbursement of orphan drugs, and to locate these within a coherent decision-making framework to aid reimbursement decisions in the presence of limited healthcare resources.
Abstract: The rate of development of new orphan drugs continues to grow. As a result, reimbursing orphan drugs on an exceptional basis is increasingly difficult to sustain from a health system perspective. An understanding of the value that societies attach to providing orphan drugs at the expense of other health technologies is now recognised as an important input to policy debates. The aim of this work was to scope the social value arguments that have been advanced relating to the reimbursement of orphan drugs, and to locate these within a coherent decision-making framework to aid reimbursement decisions in the presence of limited healthcare resources. A scoping review of the peer reviewed and grey literature was undertaken, consisting of seven phases: (1) identifying the research question; (2) searching for relevant studies; (3) selecting studies; (4) charting, extracting and tabulating data; (5) analyzing data; (6) consulting relevant experts; and (7) presenting results. The points within decision processes where the identified value arguments would be incorporated were then located. This mapping was used to construct a framework characterising the distinct role of each value in informing decision making. The scoping review identified 19 candidate decision factors, most of which can be characterised as either value-bearing or ‘opportunity cost’-determining, and also a number of value propositions and pertinent sources of preference information. We were able to synthesize these into a coherent decision-making framework. Our framework may be used to structure policy discussions and to aid transparency about the values underlying reimbursement decisions for orphan drugs. These values ought to be consistently applied to all technologies and populations affected by the decision.
84 citations
TL;DR: Osterwalder et al. as discussed by the authors present an approach for creating a clear and compelling value proposition that can help frame any new initiative or continuous improvement activity, and as a result, is an essential skill for a quality management professional.
Abstract: Value Proposition Design. 2014. Alex Osterwalder, Yves Pigneur, Greg Bernarda, and Alan Smith. Hoboken, NJ: John Wiley & Sons. 288 pages. Crafting a clear and compelling value proposition can help frame any new initiative or continuous improvement activity, and as a result, is an essential skill for a quality management professional. This collaboration of four authors from a software company that presents itself as “specializing in tools and content for strategic management and innovation” provides a strong basis for understanding the dimensions of a value proposition, connecting with customers and stakeholders to concisely define them, and then carrying that information through the process of creating products, services, and even new business models. It is a strong new contribution to the practitioner literature in quality management, and outlines many new approaches for value creation. This book is organized into four sections: Canvas, Design, Test, and Evolve. “Canvas” refers to creating a platform to make the process and outcomes of value creation more visible and tangible. It steps the reader through the process of creating a value map, assessing ideas for fit, and exploring contextual issues that can make a value proposition succeed or fail. The “Design” section covers rapid prototyping principles, techniques for sparking new ideas and communicating them within and beyond teams, and approaches for simulating the voice of the customer. The section on “Test” is strong, and goes beyond simply testing ideas, to proactively engaging customers in the value creation process, and determining what elements need to be true for one’s ideas to work in practice. The “Evolve” section is the weakest, providing encouragement to “improve relentlessly” and “reinvent yourself constantly” without the expansive collection of practical stories and examples that make the other sections so powerful. The authors have created a fun and engaging text, full of cartoonlike pictures and exercises, which will be easily accessible to any member of a business development or quality improvement team. There are practical examples and stories provided throughout, which illuminate the concepts effectively and can help teams expand, refine, enhance, and articulate their visions by applying best practices through successful templates. The only weakness of this book is that it does not tie any of its assertions or practices to the academic literature. However, the value proposition design canvas that this book describes in detail has demonstrated clear value already for many practitioners, and may provide researchers with ideas for making additional connections between established quality tools, principles, and practices.
TL;DR: In this article, the authors focus on the important role that employees play as boundary spanning workers in the value creation phases, linking the tourism service provider and customer, and examine the nature of a tourism service providers value proposition, its contribution to the value offering, and subsequent impact on customers' perceived-value-in-use.
TL;DR: In this article, the authors identify the main sub-systems of the Product-Service System (PSS) in the electric car industry and identify the critical success factors (CSFs) in marketing.
TL;DR: In this paper, the authors assume a positivist, hypothetico-deductive approach by attempting to address the question: What are the key drivers of perceived value of private label branded breakfast cereals, taking price, perceived risk and perceived quality into account?
TL;DR: In this paper, the authors investigate the concept of the heritage store, the locations that lie at the heart of a brand identity and history, and analyze the characteristics of heritage stores and their role in the management of heritage brands.
TL;DR: In this paper, the authors explore the value of networked foresight: foresight conducted in innovation networks for the benefit of the network and its partners with active contributions from the partners.
TL;DR: In this paper, the authors study front-line employees' contribution to service innovation, when they contribute and how they are involved in service innovation and reveal that early and active frontline employee involvement in the service innovation process creates conditions for a positive contribution.
Abstract: Purpose - This paper aims to study front-line employees' contribution to service innovation, when they contribute and how they are involved in service innovation. Design/methodology/approach - The paper draws on a multiple-case study on service innovation in four organizations with extensive front-line employee involvement. The main data collection methods are interviews and observations. Findings - The paper suggests that front-line employees contribute customer knowledge, product knowledge and practice knowledge during five phases of the service innovation process - project formation, idea generation, service design, testing and implementation - and that front-line employee involvement ranges from active to passive. Research limitations/implications - Statistical generalization of the results is needed. Practical implications - The paper reveals that early and active front-line employee involvement in the service innovation process creates conditions for a positive contribution to service innovation. Originality/value - The paper suggests that early and active knowledge contributions by front-line employees to the service innovation process are associated with the creation of attractive value propositions.
TL;DR: Five key opportunities for adding value in the perioperative journey are suggested: collaborative decision-making, lifestyle modification before surgery, standardization of in-hospital peri operative care, achieving full recovery after surgery, and the use of data for quality improvement.
Posted Content•
TL;DR: In this article, the authors address the question: "How should firms manage the intellectual property that their customers create?" They explore how CGIP presents important dilemmas for managers, and argue that consumers' "intellectual property" should not be leveraged at the expense of their emotional property.
Abstract: Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of ‘consumer generated intellectual property’ (CGIP). In this paper, we address the question: ‘How should firms manage the intellectual property that their customers create?,’ It explores how CGIP presents important dilemmas for managers, and argue that consumers’ ‘intellectual property’ should not be leveraged at the expense of their ‘emotional property.’ We integrate these perspectives into a diagnostic framework and discuss eight strategies for firms to manage CGIP.
TL;DR: In this paper, the authors suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of the pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries.
Abstract: Purpose – The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries Design/methodology/approach – This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources Findings – The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries Limitat
TL;DR: In this paper, the authors build and test a model of venture performance using data from 145 internal corporate ventures (ICVs) and find that value proposition evolution is related to venture performance in a curvilinear manner.
TL;DR: In this paper, the authors investigate a guest's subjective appraisal of a hotel's green marketing program, or green equity, along with value, brand and relationship equities on guest loyalty, and find that green equity plays a significant role in customers' overall assessment of the marketing programs; however, the effect is weaker when compared with the other indicators, including a hotel’s value proposition, brand image and loyalty programs.
Abstract: Purpose – This paper aims to investigate a guest’s subjective appraisal of a hotel’s green marketing program, or green equity, along with value, brand and relationship equities on guest loyalty. Design/methodology/approach – Study 1 presents three models to explicate the role of a luxury hotel’s green initiatives in influencing guest loyalty. By means of structural equation modeling, one model emerges with the best fit. Study 2 examines how tourists assign economic value to a hotel’s green programs. Findings – Green equity plays a significant role in customers’ overall assessment of a hotel’s marketing programs; however, the effect is weaker when compared with the other indicators, including a hotel’s value proposition, brand image and loyalty programs. Furthermore, the results reveal that tourists are willing to pay a price premium for a hotel’s green marketing programs. Research limitations/implications – The paper links green marketing to the customer equity model and clarifies the impact of green mark...
TL;DR: In this article, the authors examine emerging and evolving strategies and tools for financing social enterprises, which is a very young subfield of social entrepreneurship; one that has been dominated by practitioners and only recently has attracted scholarly interest.
Abstract: In this Special Issue of the Entrepreneurship Research Journal, we examine emerging and evolving strategies and tools for financing social enterprises. This is a very young subfield of social entrepreneurship; one that has been dominated by practitioners and only recently has attracted scholarly interest. However, it is a vital topic because of the need for more and better resources to bring scale to the pursuit of social and/or environmental mission. It is an immensely fertile field for research. Dees, Emerson, and Economy (2001) remind us that financing for social entrepreneurship should be driven by the human and physical resources required to deliver on the social value proposition (SVP) of the enterprise, which, in turn, must be guided by the activities necessary to accomplish the mission. As SVPs become more ambitious and activities more sophisticated, more capital is required in forms that are appropriate to the organizational structure and life cycle stage of the enterprise. Traditional forms of financing for social entrepreneurship are no longer adequate to the task. They are often short-term, categorical, and transactional in nature (Wei-Skillern et al. 2007), when what is needed are financial resources that free the social entrepreneur to focus on mission achievement (not fundraising) at a scale that yields transformation. This has led to experimentation that has pushed the boundaries of traditional financing, such as Crowdfunding and program-related investments. However, even this has not proved to be enough. The newest idea in good currency in the social entrepreneurship financing arena is social impact investment, which combines financial investment and social and/or environmental impact. Social impact investors seek both financial
TL;DR: In this article, a customer value proposition is conceptualized as a form of interorganizational management accounting and several case studies demonstrate how calculations of customer value were made by new technology-based firms, and they show that these firms had implemented particular offering changes that were informed by specific insights obtained from their calculations.
TL;DR: In this article, the authors address the question: "How should firms manage the intellectual property that their customers create?" They explore how CGIP presents important dilemmas for managers and argue that consumers' "intellectual property" should not be leveraged at the expense of their "emotional property".
Abstract: Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of “consumer-generated intellectual property” (CGIP). This article addresses the question: “How should firms manage the intellectual property that their customers create?” It explores how CGIP presents important dilemmas for managers and argues that consumers' “intellectual property” should not be leveraged at the expense of their “emotional property.” It integrates these perspectives into a diagnostic framework and discusses eight strategies for firms to manage CGIP.
25 Jul 2015
TL;DR: In this article, the authors identify the value proposition frameworks for internal and external employer branding from work value preferences of Indian workforce and analyse the effects of demographic variables and their interactional effects on work value preference of employees.
Abstract: Employer branding has drawn the maximum attention of researchers and industry practitioners in recent days. Retaining and attracting current and potential employees essentially require the employers to understand the work value preferences of employees which vary across time and culture. This paper has twin objectives (a) to identify the value proposition frameworks for internal and external employer branding from work value preferences of Indian workforce; and (b) to analyse the effects of demographic variables and their interactional effects on work value preferences of employees. Data were collected from 302 Indian employees from different Indian organisations. Findings suggested six-factor model for internal employer branding and five-factor model for external employer branding. Further analyses (MANOVA) for demographic variables and their interactional effects on work value preferences also revealed significant findings. Value proposition framework and their policy implications in Indian context are discussed in detail.
TL;DR: In this paper, the authors use an existing strategy tool, Kim and Mauborgne's strategy canvas, to robustly test whether a firm is underperforming because it is either executing the wrong value proposition's delivery or failing to properly execute the right customer value proposition delivery.
TL;DR: In this article, the authors use service logic to develop a process model of customer and supplier participation in exchange with three phases (production, negotiation and usage), explores why suppliers allow customer participation in value proposition creation, and the motivations compelling customers to participate.
TL;DR: In this article, a framework for managing and utilising design knowledge in the conceptual design of product-service systems (PSSs) is proposed to support idea generation in PSS design.
Abstract: This study focuses on how to manage and utilise design knowledge in the conceptual design of product–service systems (PSSs). PSS is a business concept that manufacturing firms can use to enhance the value of their products. In order to design an effective PSS, it is important to search for value proposition opportunities throughout the entire product life cycle and offer appropriate services to customers at each opportunity. Because both products and services are included in the design space, PSS designers need to use a broader range of knowledge than that required in product design. Against such background, this article proposes a framework for managing and utilising PSS design knowledge to support idea generation in PSS design. The effectiveness of the framework is demonstrated by its application on an example of PSS design.
08 Sep 2015
TL;DR: In this article, a case study of KakaoTalk, a representative fast growing social platform in Korea, was conducted to find the determinants of successful platform business through the case study, and a platform evolution pattern that involves the PSE curve in order to form successful platform was proposed.
Abstract: Platform business is often regarded as notable examples of successful businesses model in the mobile industry. The purpose of this study is to find the determinants of successful platform business, through the case study of KakaoTalk, a representative fast growing social platform in Korea. This study also discusses how to create a value proposition and how organizations using the platform can cooperate. The case analysis indicates that a preparation, spread, evolution (PSE) curve is a successful platform business evolution. The PSE curve is composed of three phases: a preparation phase that establishes the platform and sets the target group, a spread phase where the firm provides killer content, such as KakaoGame, a low pricing strategy, and reinforcement of the platform rules in the early stages of the platform; and an evolution phase where the platform continues to evolve. This study proposes a platform evolution pattern that involves the PSE curve in order to form successful platform. This study contributes to the innovation for social platform businesses.